Importance of Credibility for Entrepreneurs

You have to be credible. Credible people are trustworthy and even when those around them do not understand what they’re doing, they will still follow because the person is credible.

A business will be successful if it is credible. Customers will always patronize its product. Why? Because they can trust it to always deliver consistently what it says it will deliver – be it a service or a product.

One of the reasons why most entrepreneurs go out of business is because they have lost credibility with their customers. This happens when they fail to deliver what they promised.

A friend of mine started a t-shirt printing business but in less than a year went bankrupt. When he launched his business, customer flocked to buy his shirts because the designs were good, the fabric was comfortable and the prints didn’t fade easily. But my friend got complacent and started cutting corners with his business. Although the designs were still good, the fabric quality started deteriorating. The print faded easily after several washes. He skimped on quality in order to make more profit. As a result, his customers lost faith in his product and stopped buying. Soon enough, the business folded.

Credibility is important not just to your customers but to your employees as well. Employees stick with a company (and a boss) that values credibility. If the company constantly shortchange its customers by skimping on quality then employees would easily lose faith in what the company sells. If the boss always says one thing yet does another, employees would lose respect for the boss. As an end result, employees would leave and those that remain may not be the good ones the company needs.

So as an entrepreneur, how can you build your and your company’s credibility?

Here’s how:

1. Do things consistently.

If you keep changing your product or your decisions, your customers and your employees will get confused. This will end up with them unable to anticipate your next move. The end result will be to lose faith in you or your product.

The only time you should deviate from consistency is when it will be for the improvement of a certain product or procedure.

2. Have a word of honor.

When you say something stick to it. When your product promised to deliver a certain feature, make sure it does that. When you tell your employees they will get a bonus if they perform well, give that bonus if they achieve your requirement.

Always sticking with what you say makes people trust you. Soon enough, you’ll be able to build your credibility.

3. Don’t engage in shady deals.

Even if it will make things easier or accomplish tasks faster, always stick with what is right. The moment you perform a misdeed, no matter how small and your customers or employees get wind of it, you will destroy your credibility.

Credibility is essential to every business and employer. Make sure you build one from the beginning and apply it to every aspect of your business.

We want to help at least 1,000 employees and OFWs to start their own business and become Certified Leapreneurs! We know that transitioning from employee to entrepreneur is a BIG STEP so we want to guide you in this exciting journey.